There appears to be some uncertainty about exactly how the two year period of grace which applies to new entrants, should be interpreted.
FAIS Circular 7 of 2012 issued last week refers to these individuals as follows:
The deadlines in Table A above apply to candidates with a date of first appointment prior to 30 June 2010. Candidates appointed on or after 1 July 2010 have a period of 2 years from the date of first appoinment to complete the level 1 regulatory examination(s).
Our compliance division took this up with the regulator in view of the following stipulation in Section 4(6)(e) of BN104 of 2008:
“(e) a representative rendering services under supervision must obtain the first level regulatory examination as it applies to the Category and/or subcategory appointed for, within two years of appointment as a representative, and complete the qualification and second level regulatory examination(s) in relation to the specific Category or subcategories appointed for, within the six year period specified in subparagraph 4(4) above. The respective periods ends on 31 December of the year in which the second and/or sixth year falls;”
It appears that those appointed in the industry for the first time, say on 1 July 2010, and are working under supervision, may have until the end December 2012. We will share the outcome of our enquiries with readers as soon as we hear from the FSB.
Please note that these “new entrants” to the industry were excluded from the statistics provided in FAIS Circular 7 of 2012. The total of nearly 45 000 is quite staggering, and makes up nearly 42% of the actual number of representatives in the industry.
This lack of practical experience in the rendering of financial advice and services is a serious concern for all affected, particularly consumers. It should be a major consideration for those busy with effecting changes in the industry.
Moenie die baba saam met die badwater uitgooi nie.